People's United Financial Inc. (PBCT): Today's Featured Banking Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

People's United Financial ( PBCT) pushed the Banking industry lower today making it today's featured Banking laggard. The industry as a whole closed the day up 0.1%. By the end of trading, People's United Financial fell $0.16 (-1.1%) to $13.52 on heavy volume. Throughout the day, 5,057,547 shares of People's United Financial exchanged hands as compared to its average daily volume of 3,172,400 shares. The stock ranged in price between $13.43-$13.64 after having opened the day at $13.62 as compared to the previous trading day's close of $13.68. Other companies within the Banking industry that declined today were: Patriot National Bancorp ( PNBK), down 12.2%, Atlantic Coast Financial ( ACFC), down 11.6%, C&F Financial Corporation ( CFFI), down 4.3% and Webster Financial ( WBS), down 3.8%.
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People's United Financial, Inc. operates as the bank holding company for People's United Bank that provides commercial banking, retail and business banking, and wealth management services to individual, corporate, and municipal customers. People's United Financial has a market cap of $4.6 billion and is part of the financial sector. The company has a P/E ratio of 18.8, above the S&P 500 P/E ratio of 17.7. Shares are up 12.2% year to date as of the close of trading on Tuesday. Currently there is 1 analyst that rates People's United Financial a buy, 2 analysts rate it a sell, and 12 rate it a hold.

TheStreet Ratings rates People's United Financial as a buy. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, increase in stock price during the past year, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, National Bank of Greece ( NBG), down 22.8%, PSB Holdings ( PSBH), down 6.8%, Rurban Financial ( RBNF), down 6.1% and First Internet Bancorp ( INBK), down 6.1% , were all gainers within the banking industry with Banco Santander ( SAN) being today's featured banking industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the banking industry could consider KBW Bank ETF ( KBE) while those bearish on the banking industry could consider ProShares Short KBW Regional Bankng ( KRS).

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